St. Louis Investment advisor pleads guilty to fraud charges -

St. Louis Investment advisor pleads guilty to fraud charges

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By Daniel Fredman By Daniel Fredman
ST. LOUIS (KMOV) -- A St. Louis man pled guilty to defrauding investors of their funds between Nov. 1, 2007 and Jan. 31, 2013.
Charles Williams, 76, pled guilty to one felony count of wire fraud and two felony counts of mail fraud. Each charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Sentencing has been set for May 26.
Eleven individuals whose funds were invested in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC reported that they provided Williams more than $753,144. 
On Dec. 28, 2012, UMB Bank records revealed that only $11,800 remained in the former account and $54,400 in the latter account.

According to court documents, on March 6, 2008, the Securities and Exchange Commission barred Williams from association with any investment adviser and revoked the investment adviser registration of C.R. Williams, Inc. Williams and his corporation continued to accept investments into the two funds until 2012. Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund and C.R. Williams Tax Advantaged Fund. Without the authorization of investors, Williams made multiple electronic transfers from investor accounts into his two investment funds. In order to conceal the transfers, Williams prepared and mailed fraudulent portfolio valuations for his two funds to investors. He used the investors' funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself. 

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